Singapore
Income Tax Rate
Corporate Tax Rate
Sales Tax / Service Rate
0% - 20%
17%
7%
Personal Income Tax
Income occurred and received in Singapore are subject to personal income tax at progressive
rates up to 20%, based on the following progressive rates.
Taxable Income (SGD)
SGD 0 – 20,000
SGD 20,000 – 30,000
SGD 30,000 – 40,000
SGD 40,000 – 80,000
SGD 80,000 – 160,000
SGD 160,000 – 320,000
SGD 320,000 and above
Tax rate
0%
3.5%
5.5%
8.5%
14%
17%
20%
A non-resident individual (other than a director and actor) who exercises a short term
employment in Singapore for not more than 60 days shall be exempt for tax in Singapore.
However, individual resided in Singapore for not more than 60-183 days shall be taxed at a
15% tax rate.
Corporate Tax Rate
The standard corporate tax rate in Singapore is 17%. A partial tax exemption is eligible for
first SGD 300,000 of chargeable income. Under this condition, 75% of the first SGD 10,000
of chargeable income is tax exempt and 50% of the next SGD 290,000 of chargeable income
is tax exempt.
Chargeable Income
First SGD 10,000
Next SGD 290,000
Total SGD 300,000
Exemption
75%
50%
Exempt amount
SGD 7,500
SGD 145,000
SGD 152,500
Value Added Tax/ Service Rate
The value added tax system in Singapore is called Goods and Services Tax: GST. The
standard GST rate in Singapore is 7%. GST aims at taxing the final consumer goods and
services made in Singapore, and importation of goods into Singapore. However, where the
goods are dutiable, specific tax rates shall be applied. GST rates for dutiable goods is
calculated based on Cost, Insurance and Freight (CIF) or the value of the last selling price
(LSP), if there has been more than one sale, plus all duties and other charges. In the case of
non-dutiable goods, Singaporean government shall impose the exemption upon some goods
and services, such as financial services fee.
Withholding Tax
Types of taxable income
Tax rate
(For non-resident)
Interest
15%
Royalty
10%
Technical fee
17%
Singapore does not levy withholding tax on dividend and there is no Capital Gains Tax.
Tax Incentives for SMEs
Partial Tax exemption
From 2008, partial tax exemption for SMEs is provided up to SGD 300,000.
Full Tax exemption
The full tax exemption for newly established companies was introduced in 2005 to widen
SMEs every opportunity to thrive and succeed. Under this condition, new start-up companies
are granted tax exemption on the first SGD 100,000 of their chargeable income derived in
each of their first three years of operation that fall within 2005 to 2009.
The 2009 expiry date was removed in the recent 2007 Budget to enable all new companies to
apply a full three years of tax exemption. In addition, effective from 2008, a further 50%
exemption will be given on the next SGD200,000 of chargeable income derived by new
companies.
Carry – back relief system
The carry-back relief system was implemented in 2006 as a means to provide more timely
relief for SMEs to be able to cope with cash-flow problems, especially in a cyclical
downturn. With this scheme, loss making companies shall be able to claim back some of the
taxes paid in the preceding year if losses are incurred in the current year.